Question

MGT 187 Case #2 Due January 29, 2019 You are the CEO of XYZ Corporation which just received funding from friends and family totaling $125,000. You have sold your software to the following companies: CBS S5,000 due week 1 and S5,000 week Sony $3,000 due week 3 and $3,000 week 7 Netflix $2,000 due week 4 and $2,000 week 8 Amazon $7,000 due week 6 Microsoft S3,500 due week 8 Oracle $2,500 due week 8 IBM S6,000 due week 8 Facebook $3,750 due week 2 and S3,750 due week 6 Google $2,500 due week 1 and $2,500 due week 5 Apple $5,500 due week 3 and S5,500 due Expenses for XYZ are as follows: Payroll S10,000 for weeks 1,3,5 &7 each Rent S3,000 paid week 1 and S3,000 paid week 5 The following expenses are due at the end of each month in the following amounts nsurance $1,000 3,000 S5,000 les $11,500 Travel S12,000 unting S2,00 ther $1,000 For the next eight weeks please calculate the amount of cash available at the beginning and at the end of the week. Will you have enough cash to cover your expenses? When should you begin fund raising for your seed capital ro

Answer 1

cash Budget
week	0	1	2	3	4	5	6	7	8
beginnin balance of cash		125000	64000	12250	-44750	-98250	-159250	-205000	-262000
cash collection:
CBS		5000				5000
Sony				3000				3000
netflix					2000				2000
Amazon							7000
microsoft									3500
oracale									2500
IBM			3750						6000
google		2500				2500	2750
Apple				5500				5500
total cash collection		7500	3750	8500	2000	7500	9750	8500	14000
total cash available		132500	67750	20750	-42750	-90750	-149500	-196500	-248000
payments
payroll		10000		10000		10000		10000
rent		3000				3000
insurance		1000	1000	1000	1000	1000	1000	1000	1000
telephone expense		3000	3000	3000	3000	3000	3000	3000	3000
website		5000	5000	5000	5000	5000	5000	5000	5000
marketing		10000	10000	10000	10000	10000	10000	10000	10000
sales		11500	11500	11500	11500	11500	11500	11500	11500
travel		12000	12000	12000	12000	12000	12000	12000	12000
legal		10000	10000	10000	10000	10000	10000	10000	10000
accounting		2000	2000	2000	2000	2000	2000	2000	2000
others		1000	1000	1000	1000	1000	1000	1000	1000
total of expenses		68500	55500	65500	55500	68500	55500	65500	55500
year end cash balance		64000	12250	-44750	-98250	-159250	-205000	-262000	-303500
Amount needs to borrow to meet out the expenses				-44750	-98250	-159250	-205000	-262000	-303500
company does not have sufficient funds to meet its expenses
Seed capital financing start when you plan for starting a businss and initial investments are done by the owner himself in researh and development or in basic infrastructure to start a business and to attract venture capitalist

Answer 2

This answer is wrong, the expenses are at the end of each month (week 4 and 8) and  not all the weeks